Sensex ends 115-point down; autos outperform, NHPC disappoints

The Sensex continued its downtrend for the second consecutive session on the back of weak European cues. Selling in capital goods, power, oil & gas exploration, realty, metal, pharma and banking companies' shares pressurised the Nifty to close just 25 points above the 4600 mark. However, auto stocks outperformed other indices due to their strong August sales numbers.

Equity benchmarks started on a positive note due to good Asian cues and recovered all Monday's losses. Buying had seen across the sectors. Asian markets ended higher; Taiwan Weighted and Kospi gained 2-2.8%. Nikkei, Hang Seng and Shanghai were up 0.4-0.8%. However, around 13:45 hours IST, indices gave up all their morning trade gains on the back of weak European cues; wherein banking shares hammered the most. UK manufacturing fell to 49.7 in August from 50.2 in July, first fall since February which was another reason. At the time of closing of Indian equities, European markets were down about 0.8-1.5%. US index futures fell 0.5-0.8%, which also put more pressure on the markets and gave indication of negative opening of US markets.

The 50-share NSE Nifty touched a day's low of 4600.65, before closing the day at 4625.35, down 0.79% or 36.75 points. The 30-share BSE Sensex fell 115.45 points or 0.74%, to settle at 15,551.19, after seeing an intraday low of 15,475.28. Both indices slipped 2.3% from day's high 4735.90 and 15,923.09, respectively.

Motilal Oswal, CMD, Motilal Oswal Financial Services, does not see markets hitting new highs this year. ''I would remain cautious, although optimistic, in the longer term on various macro economic indicators.''

The broader indices underperformed the benchmark indices, down 1.5% each. The market breadth also turned negative in the last couple of hours; about 1,192 shares advanced while 1,704 shares declined on the BSE. Nearly 290 shares remained unchanged.

NHPC, India's largest hydro power generator, disappointed the street on its debut. It started at Rs 39 on the BSE and traded around Rs 37 for majority of the session. It was good that it held its issue price of Rs 36 and closed at Rs 36.7, a premium of 1.94%. Analysts expected listing around Rs 40-42.